Natural justice in revised assessment: absence of independent mind and denial of cross-examination justified quashing the revision.

A revised assessment was held unsustainable because the Commercial Tax Officer acted at the Deputy Commissioner's behest and failed to exercise independent judgment. The assessee was denied an effective opportunity to meet material gathered behind its back and to cross-examine the persons whose statements were relied upon, so the revision offended natural justice and was rightly quashed. Remand was rejected because proceedings under section 20(2) were still pending before the Deputy Commissioner when the Tribunal decided the matter, so no further remittal was warranted.

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Issues: Whether the revised assessment was vitiated because it was made without independent application of mind and without giving the assessee a proper opportunity of hearing, and whether the Tribunal was right in quashing the revised assessment instead of remitting the matter.

Analysis: The Commercial Tax Officer acted only at the behest of the Deputy Commissioner and did not form an independent opinion before revising the assessment. The assessee was not afforded an effective opportunity to meet the material collected behind its back, nor to cross-examine the persons whose statements were relied upon. The revision was therefore contrary to the principles of natural justice and was properly treated as unsustainable. The contention that the matter should have been remitted to the Deputy Commissioner was rejected because the proceedings under section 20(2) were still pending before that authority when the Tribunal passed its order.

Conclusion: The revised assessment was rightly quashed, and no remand to the Deputy Commissioner was warranted.

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